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tv   On the Money  CNBC  July 19, 2015 7:30pm-8:01pm EDT

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hi, everyone. welcome to "on the money." i'm becky quick. hi, everyone. welcome to "on the money." i'm becky quick. looking for a travel deal? fewer airlines, more websites. what does it mean for your wallet? we'll talk to the ceo of travel search engine, kayak. going for the gold. how high-tech meets high fashion. staying plugged in while you're fashion forward. the sharing economy isn't just for young people. meet the new generation of uber drivers. >> i told my wife, i said, i'm going to drive a cab. she laughed. >> and let the sunshine in. when does it pay to go solar and get those big panels on your home? can you go green and see extra cash too? "on the money" starts right now. >> this is "on the money," your money, your life, your future. now becky quick. >> millions of americans are expected to escape the office
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this year. but the amount of money they are willing to spend on a summer vacation has dropped. in search of a deal, americans now check an average of five web sites before booking travel. the upside? even if you're stuck in a long line at the airport, you know you got a bargain. that's our cover story this week. 198 million americans are planning on traveling this year. 13% increase from last year according to american express. and many of the travelers are heading to an airport. u.s. airlines are expected to carry 2.4 million passengers a day. up nearly 5% from 2014 according to industry group airlines for america. but most want to spend less on their summer escape. the average american wants vacation to cost around $1,000 a person. that's a decrease of more than $200 from last year. the budget tightening comes as aaa's leisure travel index reports higher prices for hotels and airfare, which both increased around 6%. in search of a deal, 61% of summer travelers will go online with 25% visiting seven or more
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web sites. but many americans are unaware online travel web sites are consolidating. 80% of these websites are controlled by just two companies, ex-pediaand price line. expedia owns travelocity and hot wire, while rival priceline owns six brands, including kayak. in fact, every month kayak runs more than 110 million travel searches across 40 countries and 18 different languages. steve hefner is kayak's ceo, he cofounded the company if 2004. steve, thank you so much for being here. >> thank you, becky. >> i myself have gone to kayak. i have used a lot of different sites to try to find the best purchase. what we talked about in the package though is that a lot of people didn't know these sites were consolidating. i'll admit, i didn't realize until recently you'd been bought by priceline. what does it mean for consumers who are out there trying to find an actual bargain? are they getting different information at every site they go to? >> it depends where they go to.
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the mission at kayak is no different than the price they bought it. different from other sites, if a online as well as airlines and hotel sites themselves. they'll get a complete picture of what is available out there to purchase. >> what do you think is better than if i went to ex-pediaor priceline? >> we'll show you results. we'll show you results from airlines that may not be listed on the web sites. >> you haven't gotten pressure from priceline to slow things down or do things the way they do things? >> no. priceline is great about running us independently. there is six travel brands under each corporate umbrella. but we each have our own branch identities and philosophies. >> let's talk about americans trying to find a bargain. this is a big deal. we know people are willing to spend less or hoping to spend less than they were last year at summer vacations. what do you think is happening and what does it mean when you can go to try and find different prices at different places? >> well, it means you have to be a little bit more aggressive about what you do. you need to book a little earlier than you might want to, and be a little bit more
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flexible on your travel plans in terms of dates and destinations. kayak historically did a great job at, if you knew where you wanted to go, finding the lowest price. what we do now is we say hey, if you want to search -- this is our explore function. if you want to go to a beach in june for less than $500, we'll show you all the option for that. >> in terms of how you get paid, you show somebody else the sales. the money goes to them. how do you get a cut of the action? >> sure. the most important thing for us is actually being comprehensive. we'll show airlines and hotels that we receive no payments from. because we want to help the consumer first. but we are supported by a small referral fee. if the transaction actually gets completed as well as the advertising on the side for the site. >> we have heard a lot of talk about the airlines consolidating. it's raised questions about prices going up. what have you seen from where you sit? >> there's no doubt that airfares are higher than they were historically. i don't know if that's a function of higher consumer demand or airline consolidation. the government is going to look into airline consolidation. we don't really have a dog in
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that fight. what we do do is provide lots of tools for consumers to help them find cheaper airfares. >> when i first heard of kayak, you were one of the few sites i heard that did things like this. but it seems like an industry that's constantly updating. you've got competitors like a hipmunk, which i've never used, and trivago is another. how do you stay ahead of the curve? >> online travel is biggest. you're always going to get new entrants. what's different about kayak is we're comprehensive and we operate at a scale that these other sites don't. not only hotels for tonight, next week, next month, not only do we show you a handful of hotels, we show you every hotel. but if you need to get there, we have flights and rent a cars, et cetera. there are smaller sites in the space. but kayak is a pioneer and still massive. >> steve, one time i got burned. not through kayak. i bought through another site and when i went to try to change the dates, the airline basically told me forget about it. you didn't buy that from us. you bought it from a third party. what do you make sure consumer is still getting quality and is being taken care of on the trip? >> yeah, that's why it's so
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important for kayak to show supplier direct options. i think the best place to book an american airlines ticket is on american.com, right? and on kayak, we show that as an option. we show the otas as well, the online travel agencies, but direct, you're in a better spot. >> okay. in terms of just how it means, what's the best way to get a deal? you say things are changing. is it a better idea to book 30 days in advance, 60 days in advance? is it wait until 2 weeks and see what bargains because people haven't bought up the seats? what would you tell people? >> in general, if you know where you want to go, the earlier you book, the better off you're going to be in terms of pricing. on the kayak results on the left-hand side we'll have this price predictor tool to tell you what is happening with airfares. and we also have a travel hacker guy that tells you if you're flexible with your dates and destinations, how do to get a little more bang for your buck. >> and how often do people use the travel hacker's advice? >> you'll be surprised. a lot of people are more flexible, especially when you give them different ideas of
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places to go than you suspect. >> steve, thank you so much for joining us today. >> thank you, becky. i appreciate it. what's making news into a new week on "the money." interest rates going up. janet yellen appeared before congress this week and gave her mid-year economic outlook. she said rates likely are going up sometime this year, but should not overemphasized, but should remain low for a long time to come. a strong week for stocks, especially the nasdaq. which set a new record on thursday. there was optimism on hope that the greek debt crisis will finally be resolved. but again, you could be waiting for godeau with that as well. the markets were mixed on friday. americans spent less than expected in june. retail sales fell 0.30%. it's always a closely watched but volatile number because consumerses make up more than 2/3 of the u.s. economy. a big week for earnings. most financials came ahead of expectations including j.p. morgan chase, bank of america and citi bank. goldman sachs fell short. streaming service netflix beat analyst projections as well as
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chip maker intel. chalk this up under strange but true category. a hotel at a theme park in nagasaki, japan became the first robot-staffed hotel this week. they can check you in, take your luggage and maybe scare you and freak you out too. up next, we are on the money. look great while being plugged in. wearable technology gets a fashion upgrade. instead of being glued to your phone, a top designer lets your accessories do the talking. and later, the new economy meets older americans. why your next uber driver might not be a millennial. and right now as we head to a break, take a look at how the stock market ended the week.
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fashion meets function nowadays as luxury designers capitalize on the wearable technology trend started by the likes of google glass and fit bit. one touch designer is rebecca fashion meets function nowadays as luxury designers capitalize on the wearable technology trend started by the likes of google glass and fit bit. one touch designer is rebecca minkoff, and her brother uri mi minkoff who have released a series of items to keep you in style. they're here. thank you. >> thank you. >> you're known as the designer probably most involved with putting together wearables, making sure they fit. what happened? how did you get into that. >> i think we found consumer has her phone in her hand all the time. she is in touch with technology. for us being a millennial focused brand, it would only make sense to communicate with her in the way in which she receives information. >> and heuer a huge part of this. you're the technology guy behind this. >> yeah, i had a technology company before this. our consumer is a millennial
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native. it's our goal to keep in touch with her and all of her devices and how she couples information and how she shops. we want to be there with her as discovering new things. >> i think what's most amazing, you have products that are really seriously useful products. you're not just talking about technology as a fashion statement or something. let's take a look at some of these. this one may be my favorite. >> yeah, so we wanted to do something where you could put your phone away, you could have a lunch meeting with your boss, you could go out with your family and not constantly have your own out. this allows you to program up to 25 people that will give you a slight vibration. so it notifies you if you get something important and setting it to your babysitter or nanny. the people most important. we want to make sure fashion came first. so it's a beautiful bracelet that no one would be the weisser. >> it doesn't look like -- i think that's the problem with some of the wearable things i've seen. i don't want to look like a robot walking around. >> exactly. that was our whole theory. if we gave something you'd want to wear anyways, the technology was in it, functioning or the
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battery died or whatever it might be. but if we gave you a great price value ratio and felt great with it, having the technology is just a boost. >> what does something like this cost? >> $120. >> okay. and again, i can program it and set up to 25 people. it's just a very slight jingle. what are some of the other accessories you bought? >> some of the other accessories is a usb charger. you just wear it as a bracelet. when you're ready to charge your phone, you can plug it into a exit. it goes right in. it's stylish. it's cool. it's about making accessories, women want to wear them but look fashionable while doing it. >> something you've done, rebecca, is to really incorporate technology into the stores. we've been looking at some pictures of people in the dressing room. what kind of things can they get when they walk into a store. >> i think it's taking away the pain points you have as a female shopping. people want the vip experience. some people want to be totally anonymous. some might want the lighting for the event you're going to go to. we've integrated by survey, over 100 women in the office. what do you really want when you go to get dressed? do you want to reach your head out to call the associate or tap
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out a button to get the new size? >> it sounds like you want to control the experience of the shopper from start to finish. is that why, uri, you're opening more and more stores? how many more brick and mortar stores are you opening up? >> today, we have new york, san francisco, we have hong kong, which we recently got back from. we'll be opening chicago towards the end of this year. we plan to open two to three or four stores a year. but i really think it's the rebecca minkoff brand experience. >> rebecca, you have an amazing success story at a young age. what advice would you give to other entrepreneurs interested in chasing their own dreams like this? >> i'd say be persistent. we get told. even to this day we get told no. it's to persist through that. surround yourself with people who can help support you. i was able to be lucky that we could cofound the company together. we have an incredible president. she does sales. he's forward thinking technology. i make some pretty things sometimes. so i think it's like a perfect storm. >> it's a good team. all right.
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rebecca, uri, thank you so much both for being here. >> thank you. next for "on the money," a second career for retirees issue it's far from volunteer work. find out how the profit motive is driving this. that's ahead. and later, is going solar a bright idea? if you're looking to save on your home energy bill, find out how much these sunny savings can really cost you. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping.
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the sharing economy, which connects freelancers with available work for platforms like uber and airbnb may be dominated by millennials, but it turns out some retirees are embracing the trend as well. kate rogers here and she has more on that. hi, kate. >> that's right. while it's unlikely they may be finding recruits for the sharing economy, they're having fun and finding work. as the american workforce with workers over 65 outnumbering teens for the first time since 1948 according to the aarp. some retirees finding new work in the economy. take 69-year-old judith gordon in phoenix, arizona. gordon read about uber in an ad on craigslist and was intrigued by the opportunity driving presented. >> i applied. i loved the ad. and i was accepted but i didn't take the application for three months because i was in limbo. not sure whether i wanted to be a driver. so i had a dream and it said, to me, i can make a lot of money. so i went down and picked up my phone and started driving right away.
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>> gordon now drives as much as 50 hours a week, calling uber her pastime. she says she can make up to $850 a week as a driver partner. >> i do love meeting new people. every rider is a new person. with a new personality and new things to talk about and it's actually exciting. >> the aarp said about one-third of the american workforce is now over age 50. uber's driver demographics aren't far off from that stat. in a report released earlier this year, uber said 25% of its driver partners are also over the age of 50. information about driver demographics from companies like uber and lyft, mainly, how many drivers total they have is scant. thises a lawsuits play out in california courts over whether drivers for both companies are employees or independent contractors. for drivers like don eason, a 64-year-old retired driver,
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employee status doesn't matter. began driving for uber nearly nine months ago. he read about it in the news and was intrigued. >> it sounded too good to be true. i told my wife, i'm driving a cab. she said, you won't last a week because you hate to drive. about and i told her, well, i've never been paid for it. so let me see what happens. >> now he is hooked, driving up to 35 hours a week. >> for somebody that's retired and the times i drive, i found the best time for me was weekdays, not at night, not on weekends. and for whatever reason, it worked for me. i make enough money it supplements our income to take more vacations every year. that's the whole gist of this, me and my wife go on vacations. >> uber competitors lyft and sidecar declined to break out their driver demographics for us. lyft says it's seeing an increase in drivers over 50, and sidecar says drivers' average ages range. >> it's really interesting. you can understand the flexibility. why that's great for somebody older. may have been has more, less need for income but wants to do
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this to supplement things but we've also heard this past week, hillary clinton criticizing the what's been going on with the economy. we know there are all these lawsuits out there about how places like uber, lyft, airbnb treat their employees. does the drama start to distract from the growth or affect the growth? while hillary's criticism are met with jeb's rebuttal yesterday, the sharing economy start-up. uber, they do have a lot of drama, but it's always met with some kind of a win. yesterday we heard business travelers are now favoring them over taxis for the first time ever. they might be approved later in august to pick up and drop off at lax. one of the biggest airports in the country. so we're becoming a nation of freelancers. 53 million people are working these freelance jobs and uber and lyft are undeniable forces. i think the drama adds to the interest and the intrigue for a lot of people. >> we will be watching. of course. thank you. >> thank you. up next on "the money." a look at the news for the week ahead. eco-friendly and wallet friendly. how solar power can give you positive energy.
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"what ya doing?"
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"checking my free credit score at credit karma. when's the last time you checked yours?" "your credit...... is fly!" "aren't you curious what it is right now?" "still poppin' and lockin'" "credit karma, get your free score now." for more on our show and for more on our show and guests, otm.cnbc.com and on twitter @onthemoney. here are the stories coming up that may impact your money this week. tech giants amazon, apple, yahoo! and microsoft report
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their earnings. so to coffee kings starbucks and dunkin' brands. the dodd frank wall street reform bill that was passed to prevent a recurrence of the events that caused the financial crisis of 2008. one small step for mankind. tuesday marks the 46th anniversary of astronaut neil armstrong's first stones the moon. tuesday existing home sales for the month of june and friday new home sales for june are out. you probably received a call for something going solar. and how much it can save you. it may make sense for your home and may not. joining us now, senior financial correspondent sharon epperson on what it takes to go solar because it's your money, your future. sharon, it's a tricky question. what does it take? >> it takes taking a look at where you live and how your house is positioned to see if it's going to make a great benefit for you. really if you can do it at all. when you look at parts of the country, when you think about going solar, even though many of us all over the country are getting calls about it, it's really in the southwest area where you are seeing the most.
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basically, anyone can go solar if they have the right type of home. you want to have a southern exposure. you want to have enough space on your roof or land around your home for the solar panels. those are a couple of things you really want to think about. >> if you figure you get it right, you're in the sunbelt area, you have a southern exposure, you think it would work, how much does it cost to set it up and how long before you recoup the costs? >> it can cost quite a bit without the incentives. maybe as much as $20,000 to set it up. you need to look at the math and calculate the potential savings. the warranty is just about 25 years. and you want to calculate how much you'll save over that period of time. how much it will cost for the panels, for the inverter, for the monitoring system, for all of those aspects of it. also, look into what you can do to get incentives to bring down that cost. it doesn't really is to cost you $20,000. >> federal or state incentives? >> right now federal tax credits can save you as much as 30%. and you could reduce it by 20%
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more. as much as 50% of the costs could be taken away based on incentives. >> are there hidden things before people decide do go solar? any lookout points? >> one of the things you want to make sure you look out for, i'm always into the savings. so make sure you go to the database to get all the possible incentives that you can get. the other thing is make sure you the right kind of roof. if you have a spanish tile roof, that's an expensive roof anyway. if you have an asphalt roof, shingle roof, it's cheaper. if you don't have the money, you can lease these. and net metering, which goes back and forth in terms of the metering of how much energy you're using. if you don't use all that you really need, you might be able to get a credit for that. so you might want to look into that too. >> last question, sharon. is this a situation where it adds to your property values or detracts from it? >> it can add to your property value. if you look at how much you're saving in terms of your utility bill, you can add $20 in terms of your increased property value. so for some folks, that could be
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$17,000 extra property value over the 25 year live. of that warranty of the panel. it's something to consider, but it should be something you really want to do for your home to save energy and save energy costs while you're in it. and just do the math. >> all right. sharon, thank you. >> sure. >> that's the show for today. i'm becky quick. thank you so much for joining us. next week, many couples split up over money issues. can a financial therapist improve both your relationship with money and with each other? each week, keep it right here. we're "on the money." have a great one, see you next weekend. ♪ if you can't stand the heat, get off the test track. get the mercedes-benz
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-you're steven, also? to-steven: yes. profit"... lemonis: three generations right here. steven: right here. custom-furniture business... do you and your dad have blowups here? steven: all the time. lemonis: ...struggles to stay up with the times... [ screeching noise ] steve: some of the machinery here are 50 years old. lemonis: ...and a father who won't give up control... steve: do you have a packing list? steven: are you really gonna micro me again right now? steve: please. lemonis: ...leaves a son struggling to make his mark. steven: oh, my god. lemonis: if i can't bring these two together... steven: when it's done, it has a sticker. if this doesn't have a sticker, is it done? -steve: no, it's not done. -steven: okay. lemonis: if he can't do the job, you fire him. ...there may not be a next generation of grafton furniture. your grandfather was here. now your father is here.
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